The House of My Dreams

Dear Scott,

I love reading your columns and would love your advice on what to do. I’m married with two boys (one newborn) and we have savings of $12k, with no debt. My husband earns $45k, and our family assistance payments will finish in January. I go back to work in April (after six months off) on a part-time salary of $52k. We’d love to buy our own home and send our boys to a private high school, but a 20 per cent deposit seems so far away with average house prices of $500,000. I feel very disheartened. Should we just invest our money instead?

Jody

Hi Jody,

This is the story of our time: people on average incomes increasingly can’t afford to live in capital cities. Actually, your family is far below the average income, so you need a plan to address that. Your husband needs to earn more: $45k isn’t going to cut it, I’m afraid. Together, you need to work out a realistic five-year plan to increase his income. Long term, that will give you the biggest bang for your buck, particularly if you continue living like you are now and save the extra he earns.

Scott